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tv   Erin Burnett Out Front  CNN  October 1, 2013 2:00am-3:00am EDT

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i'm not going to negotiate. i'm not going to negotiate. i'm not going to do this. i would say to the president, it's not about me. it's not about republicans here in congress. it's about fairness for the american people. >> an angry speaker of the house of representatives, at an impasse in washington, sending the u.s. government into a shutdown. you're watching live coverage here on cnn. i'm john vause. >> i'm natalie allen. we want to welcome viewers in the u.s. and around the world to our coverage this hour.
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the u.s. government shutdown now in its second hour, some 800,000 workers are being furloughed into an agreement can be reached on funding the government. >> nonessential workers will stay home or be turned away in the morning. many government offices will be closed along with national parks and museum. law enforcement, social security and the postal service will not be effected. >> the shutdown became a certainty late monday when the senate again rejected house efforts to use a stopgap spending bill to derail obama care. >> president obama tried toe rally congressional leaders with phone calls in the hours leading up to that latest vote. >> just a short time ago, house republicans voted to keep obama care amendment attached to the spending bill and then requested negotiations with the senate. even though the idea was already rejected by senate majority leader harry reid. how will a government shutdown affect daily life in the u.s.? take a look. first, hundreds of thousands of federal employees are being furloughed and federal offices
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will be closed. that said, critical workers, including air traffic controllers and food inspectors still have to go to work. but without pay. all military personnel also remain on duty. they will continue to be paid, thanks to a bill adopted unanimously in congress on monday and signed by the president. however, hundreds of national parks, as we mentioned, museums, zoos, are all closed. millions of visitors will be turned away from there. the last time there was a shutdown thousands of passport applications went unprocessed, meaning tourism and airline revenues could take a hit. but the state department says it will continue visa and passport operations overseas. >> yes. but the contentious issue at the center of this shutdown will go ahead as plan. the health care law, known as obama care, goes into effect despite the shutdown. starting today americans can buy into that program that's designed to provide affordable medical care for millions.
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republicans and others argue, the law is too intrusive. >> let's go to washington for the ligatest live in washington. joe johns joins us. sh shutdown has come about because of the vehement toward obama care. some might think, why is this one issue the thing that brought down the u.s. government right now? >> reporter: bottom line is, republicans, conservatives, many of them in the government say the program is too expensive. it costs too much. and they see it as part and parcel of the greater problem of the government spending in the united states and they say something has to be done about it. that's why you see it coming up now. that's why it could also spill over into the issue of increasing the debt ceiling in just a couple of weeks.
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it's all about the spending. tea partyers say that's a key part of their agenda they want to address during the obama administration, natalie. >> many years ago the shutdown was between, let's see, newt gingrich and bill clinton. now it's between john boehner and barack obama. what might be next between these two? who reaches out to whom or what will be the next step after everybody gets just a few hours of sleep tonight? >> reporter: right. well, there are a hundred different scenarios. the bottom line is, either you get a short-term spending bill to keep the government operating while you continue to try to negotiate this thing or you let the government remain closed for business as it were and continue to try to negotiate with the gun at your head, as it were. so, those are really their options. but at some point the speaker of
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the house has to get with the varying factions in the republican party and try to come to some agreement that people will be happy with. and figure on you how the to get the government running again. that's probably the bottom line option. >> already heard from harry reid late into the night who said he would not negotiate with a gun to his head. there could be a change there? >> reporter: yeah -- well, something's got to happen. you know, there was this late night news conference about 1:00 a.m. here in eastern time in the united states where speaker boehner at the end of a very long day comes out and talks to reporters about what got accomplished and what didn't get accomplished here. listen to some of what he had to say. >> the house has voted to keep the government open, but we also want basic fairness for all americans under obama care. >> reporter: what do you say to those workers, sir?
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>> reporter: looks a little disgusted there, if you ask me. john boehner has been in the house of representatives a long time. in fact, he was in the house of representatives, if i remember correctly, at the time of the last government shutdown, some 17 years ago. he's been around the barn a couple of times. he knows this is a very difficult position for the highest ranking republican in congress. >> difficult position for a lot of people as they hear about this news. joe johns for us at our washington bureau. thank you. over to john. >> something's got to happen, wise words from joe johns. u.s. markets were down on monday. there was some expectation the shutdown might happen, maybe it wouldn't. there was uncertainty. that's why the markets were down. they open again seven hours from now. a lot of people trying to figure out how much this shutdown will actually cost. it's counterintuitive because you think if the government shut down, people weren't getting paid, you'd save money. that's not the case.
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>> you'd think so. let's break it down a little bit, john. one analyst at moody's estimates furloughed workers will lose out on $1 billion in wages every week. so, if the shutdown lasts, let's say, three to four weeks, it could cost the economy $55 billion. now, you're just talking earlier about the last government shutdown in 1995-96. that cost the u.s., to put this in perspective, $1.4 billion, about $2 billion in today's dollars. it's because in past shutdowns, furloughed workers have gotten back pay, right? all the work that piles up during the government shutdown still needs to get done, so basically you're being paid for a vacation. closed parks, museums are more than just an inconvenience, john. that means lost revenue. congressional research estimates during the last shutdown they lost 9 million visitors to national parks, museums and
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monuments. that means entrance fees aren't collected, flights, restaurants, hotels. this shutdown could cost the u.s. even more. >> you mentioned the last time the government was shut down, dushg the '90s. the economy was so much better. a lot of people shrugged off this latest shutdown taking the stock market bounced back. this economy is not nearly as resilient as it was 17 years ago. >> that's right. very different. we're in unchartered territory right now, unprecedented. the economy we're seeing right now is still very fragile. experts say this could derail our economic recovery here in the u.s. remember, unemployment still stubbornly high here. the housing market is just starting to really come back. if it goes as far as default, interest rates would likely skyrocket, which would put the brakes on any kind of recovery. stay tuned, john. >> absolutely. thank you. again, early morning duty/late
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night duty. call it what you want in washington. >> up next, what happens to the military and those on active duty? what about veterans as well that depend on the government? we'll have more about it ahead. and we'll talk to americans who live overseas about how the government shutdown is playing out around the world. >> if i ran my house the way the government is running the country, i would be bankrupt. >> you've made your point. let's get on with the business of running the country and pass the budget, pass the debt limits and let us keep implooroving th economy. don't play games anymore, please. [ sneezes, coughs ] i've got a big date, but my sinuses are acting up. it's time for advil cold and sinus. [ male announcer ] truth is that won't relieve all your symptoms. new alka seltzer plus-d relieves more sinus symptoms than any other behind the counter liquid gel. oh what a relief it is.
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welcome back. watching continuous live coverage of the government shutdown shortly after 2:00 in the morning. after the shutdown took effect, president obama addressed the military service members. he says those in uniform will continue to get their paychecks and on time. but civilian workers at department of defense will likely face furloughs. he also reassured those serving in harm's way. >> those of you in uniform will remain on your normal duty status. threats to our national security
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have not changed and we need you to ready for any contingency. ongoing military operations, like our efforts in afghanistan, will continue. if you're serving in harm's way, we'll make sure you have what you need to succeed in your missions. >> for more on how american expatriots are viewing this government shutdown, we're joined by two guests, a spokeswoman for republicans abroad in the uk. however, she's not abroad today. she's in naples, florida. and robert, chairman of democrats abroad in the uk. he is in london. thank you for talking with us. emily, let's talk to you. a lot of people are blaming the republicans for the government shutdown. how do you think this is going to be seen around the world and what are your thoughts on that? >> well, obviously i recognize that the blame is going to the republicans. some members in the republican party have believed that this --
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their vote and the policies they're following represent what their constituents are calling for. but i really believe that this is a crisis of leadership in washington. and for those around the world watching this, this is not helpful for the united states and how we are perceived abroad. and i do believe that it is a crisis of leadership for our politicians in washington, including that of the president. >> robert, let's get your thoughts on that same thing. >> i agree there's a crisis of leadership. i think the breakdown is more at the feet of john boehner and caucus and house of representatives. this is 40 something times they've looked for any leverage they can find to repeal a law that's already been passed, approved. that's not the story today. the story today from people i'm talking to, americans around the world, are nervous about what the shutdown mean for them. we have to remember there are
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hundreds of thousands of americans who serve with the u.s. federal government, who are stationed overseas. i've already heard from some of our members who say they're, frankly, very nervous about this because they have family members who are going to be furloughed. the ones who are civilians, they might have pay delayed. they have bills to pay. it's a very upsetting moment for them. >> emily, let's get your perspective on that. who are you talking with and what are you hearing as far as people's concerns and how this impacts their lives? >> well, of course it impacts people's lives. and i think robert made a good point there. but in addition, it reflects the it puts american leadership globally in a bad light. we've had a lot of issues that have been impacting expats overseas, including the issues related to the middle east. and i think it's important that america gets its act together in washington and is able to fund our government. not only currently but also as it approaches the debt ceiling.
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has a huge economic impact and huge leadership impact. >> it's interesting that you look at all that's going on in the world with the problems with the economy in greece, problems in spain and elsewhere and you see people taking to the streets. looking for leadership somewhere. now it's not coming from the united states. how do you think, emily, how is this -- how are other countries going to react to what they're seeing happen in the u.s.? >> i'm not sure exactly how they'll react but this is clear it's not putting the united states in a good position. it's both houses, the congress and the senate and the president. this is unfortunate that they can't come together as they did in ronald reagan's days when they could actually work together to get through some of these very difficult issues and lead as united states should be leading. so it's our hope, i think, as
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both republicans and democrats at this point, that the government can function correctly and that they can work together and develop a process to put our country back where it should be in terms of operating the federal government. it's incredibly important. >> we're hoping for that. robert, let me give you the final word as far as your perceptions on how we're being viewed by people elsewhere and there in london. >> well, i think that the impact on nonamerican citizens hasn't been felt yet. last time there was a major government shutdown, one of the impacts was the delay in processing visa applications for those who wanted to come and visit the u.s. so if this drags on too long, a large group of people who are going to feel the bite are those planning a trip to the u.s. whoe suddenly discover they can't get their visas through. the latest i've seen from london embassy is they're anticipating normal operations but people
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need to keep an eye on that to see what will be the impact on their travel plans. >> absolutely. because they say they'll let that go through this time. they didn't last time, as you mentioned. we'll see how those are affected abroad. emily walker and robert with the democrats abroad. thank you both. we wish you well. over to john. the u.s. government is shut down, but still to come here on cnn, another brewing political battle could have a much bigger impact on global economies, because the u.s. may just run out of cash in just two weeks. i said, what a shameful day this is in the history of the house of representatives. >> it's brutal. it's brutal.
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the american people deserve two things -- a government that stays open and a congress that communicateses. our view is we should keep the government open and review with a conference. republicans view you can only do one, talk and close the government. the american people deserve better than that. >> welcome back. you're watching cnn's live coverage of the u.s. government shutdown. it's been shut down now for two hours and 20 minutes. now, the opposition of the conservative tea party republicans to obama care paved the way for this gridlock. a leader of the movement is calling the stoppage harry reid's shutdown. senate majority leader for
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tabling the legislation sent over from the house and she spoke with piers morgan. >> we have democrats that have come out against obama care. i mean, the unions are against it. even the person that wrote it, max baucus, is calling it a train wreck. it's like harry reid is acting like a spoiled brat, crossing his arms. there's nothing wrong with obama care. we're not going to discuss it. as if it's not true. no, it's failing. we need to have this discussion. if it's so great, what are they afraid of? >> obama care was debated vigorously. passed both chambers. it was passed into law, upheld by supreme court and front and center in barack obama's re-election last year. so all in all -- >> i completely disagree with you. >> -- the president has a fairly good claim to say, we've been down this road and -- >> no, no, no, no -- >> -- and what the hell does this have to do with shutting down the government? >> this is legislation was
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passed without one vote. it wasn't passed through the normal process. they used a procedural trick to get it through because they knew they couldn't get it through. >> a procedural trick called reconciliation, which is a budget measure, which indeed, she is correct. it did not have one republican vote to support it, which is an indication of how deeply divided democrats and republicans are when it comes to the president's signature health care law. of course, the question now is, how long will this government shutdown last? that will mean how much of an impact it will have on the economy. we also want to find out how it is we managed to get to this point. let's go to lisa desjardins standing by in washington with more on this. so, okay, tl us, lisa, how did it come to this and is there a possibility, maybe, of a compromise judge? . >> reporter: you know, it would be nice to think a compromise could be coming soon. that's not impossible. but, john, the answer to that question is sort of in the answer to the first, which is how did we get here? this is a fight that has been
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brewing for years. they've been putting off major budget decisions because republicans and democrats can't agree on how large government should be and has come to a head right at this point. now, is a compromise possible? we'll see. i'll tell you first of all where exactly we are now. after back and forth, back and forth, over the last three days, it's come down to this moment where house republicans say they want to go to a conference committee, which is where the house and senate usually would get together to work out differences. but senate democrats, president obama's party, they say that's just a ploy, because they're not going to compromise. they say all they want is a spending bill with nobody else attached. what's the point of a conference committee? in other words, john, both sides are accusing the other of blocking compromise. >> and that's what you call politics. >> reporter: exactly. >> we're at the situation now, eventually as joe johns said,
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something has to happen. when will that happen, when will they work something out, and maybe that woman was right when they she said they were acting like spoiled children but that applies to all of them. the shutdown is having an impact, it's having an impact now. the longer it goes on, the worse it gets. >> reporter: that's right. it's having an impact at this exact moment. i just got this e-mail from a source here. you obviously can't read it from there. but this is an e-mail that went out to custodial and other staff here at the capitol telling them, this is a frustrating time for us and our families. we're sorry to tell you we don't know what's going to happen with you. we don't know what's going to happen with your pay. but hang in there. which is difficult for people to hear, especially many of the custodial staff here i know works more than one job. they depend on this income. they will not be getting this income after today. in fact, just at this hour the custodial staff is doing their last rounds. they tell me they won't be back, the overnight shift, until this shutdown is over.
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and this is just the beginning. 800,000 workers will be going on furlough tomorrow. and then millions of other federal workers will show up on the job because they're considered essential, but will not be getting pay. the one exception is military troops on active duty will be getting paid. they made a special exemption for them. john, it's going to be that. right now i think families are sitting at home probably watching us on cnn trying to figure out how they're going to pay the bills. so, a very big deal. >> hang in there, that's the best they got. thank you. >> reporter: you got it. >> very well said. up next, our live coverage of the u.s. shutdown continues. >> we're keeping a close eye on global markets for investor reaction. >> the immediate impact on americans, as lisa was just talking about. we'll dive more into that and also talk about those visiting the united states. we'll see what they won't be able to visit. stay with us.
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welcome back to cnn's live coverage of the u.s. government shutdown. product of deadlock over house and senate on stopgap spending
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bill. there's the clock on the screen. >> 2:27. >> the house and senate will be back in session in about seven hours. we'll see if they can come to an agreement on how to end the shutdown and to fund the u.s. government. >> so, the u.s. government services will stay open despite the shutdown. that includes air traffic control and airport security. so, take note if you have a flight coming in or out of the united states. you won't be affected by the shutdown. u.s. embassies and consulates will remain open. most passport offices will be in business unless they're in a federal building that's been closed as a result of the shutdown. government officials say passports and visas will be processed. and the mail will still get through. the u.s. postal service will remain on duty. >> well, so for the first time in nearly two decades, the u.s. government has shut down. we want to take a closer look at what this could mean for global economies and for washington's image overseas.
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robin, director of independent think tank chatham house, joining us from london. thank you for joining us. >> pleasure. >> let's talk the easy question, the image problem, i guess, the u.s. get an "f" on that one. what's your perspective? >> well, it's a little shocking, i think, after the syria vote and the uncertainty over how congress would relate to the presidency to see yet immediately after this another big bust-up, train wreck between the presidency and congress. i think most people outside the u.s. have been looking at the u.s. as doing well in the global economy. housing up. the economy in the u.s. growing at faster rates, certainly than europe. and this amazing sense america was somehow detached from some of the worst aspects of global financial crisis, a strong energy sector. people generally think of the u.s. as doing well. suddenly this crisis comes along. all those doubts that were there the last time the u.s. argued over the debt ceiling re-emerge
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and people look at things like the crisis in italy, greece, eurozone in an entirely different light. the u.s. is an important bellwether for confidence. >> we've seen so many in different countries and europe taking to the streets to protest their governments. they have had this slow and steady improvement in the u.s. economy to look to as perhaps for hope as they see no hope for jobs in their country. and now this. some around the world might be surprised at what just a huge issue the obama care issue is for many in the house of representatives. >> certainly compared to most other countries where, okay, health care is an important issue but the kind of changes appear to be put in place by obama care, or the affordable care act, these are so minor, miniscu miniscule, compared to other parts of the world, that we wonder whether there's something much more fundamental, a breakdown between the checks and balances system that people have
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admired so much of the u.s. system of government. somehow it's going to disable the u.s. from playing a leadership role internationally and from being able to manage its own economy. we like to think irrespective of what goes on inside capitol hill the u.s. government motors on. that's been disapproved, the loss of direction not just global leadership but potentially in domestic leadership. >> what are your concerns if this shutdown drags on? what are your concerns as far as the growth that the u.s. economy has seen? what does that mean? >> well, you know, the u.s. is a huge economy, $15 trillion or so a year, same size as the whole of the eu, so the european economy has been relying somewhat on a pick up in the u.s. to drive exports, to keep money for investment flowing into europe. china is the alternative. as we've all discussed, china's own growth is dropping off from
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high rates. china is moving toward consumption and away from exports and investment. so china itself is going through a change. we've been hoping if china slowed down a bit, europe could rely during europe's own slow growth, to u.s. where do you turn to for global growth? nowhere else to pick up the slack. >> people have already started to talk about the debt ceiling debate that has to come up in just a few days. what are your concerns there? >> well, you feel even if some deal is done to stop this government shutdown over the next two or three days, some cobbled together compromise, we'll hit this debt ceiling problem that caused such angst about two years ago and led to a downgrading of the u.s. debt. so in that sense, yeah, we're very worried there will be a second knock-on if people start to worry the u.s. won't be paying back at some level this international debt, that huge, huge total number.
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it's not maybe large as a proportion of u.s. gdp but it's enormous within the global markets. this will definitely have knock-on effects. >> we thank you for your perspective from london for us. thanks very much, robin with chatham house in london. thanks. >> natalie, we'll have more on the u.s. government shutdown coming up this hour. first, a few other stories we're keeping a close eye on. today at united nations benjamin netanyahu will be the last national speaker at general assembly. this comes one day after meeting with u.s. president barack obama at the white house. syria's foreign minister spoke at general assembly on monday and he talked about the conflict in his country. >> translator: syria has repeatedly announced that she embraces a political solution of its crisis. it is now for those who claim to support a political solution in syria to stop all practices and
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policies against syria and to help the geneva without preconditions. >> reports say more than 50 people have been killed, dozens injured in a wave of attacks around baghdad. most were car bombing in capital. >> kenyan lawmakers are set to begin negotiatiinvestigation ini shopping ball. 67 people were killed during the siege on september 21 st. militant group al shabab claimed responsibility for the attack. authorities in chicago, illinois, are trying to solve a mystery. they're investigating why a commuter train that was parked and empty somehow moved onto a rail line and smashed into another train that was filled with passengers. dozens were injured.
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officials are trying to determine if there was a mechanical failure or if the train was deliberately set into motion. still to come here, a lot more on the u.s. government shutting down. what it could actually mean for asia. >> will there be ripple effects across the region if the stalemate drags on? [ female announcer ] stress can make your mind spin all night.
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unisom sleeptabs help you fall asleep 33% faster and wake refreshed. unisom. a stressful day deserves a restful night. markets in hong kong and shanghai are closed today for holiday. let's take a look at how other exchanges are doing. nikkei fin ired in positive territory. s&p asx down a touch and seoul kospi up a little in positive territory, shrugging off the shutdown. welcome back. you are watching live coverage of the u.s. government shutdown here on cnn. we'll take a global look at the shutdown especially in asia. ben collett from sunrise brokage
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joining us from hong kong. let's talk about what accredited nations like japan, china, all those countries that buy t-bills that keep the u.s. economy going. they don't care about obama care but they do care about stability. how do they look at the events? >> i think specifically china as far as we can tell is going to be a net benefactor of this, other than from the fact they can sit here and go, a-ha, you have prop problems with democracy over there. the actual result of this particular decision, a, will increase focus and i think increase the ability of the debt ceiling debate to impact the market and going to make the market much more uncertain. i think from a japanese debt point of view or certainly from the guys holding u.s. treasuries, i think effectively we see this as kind of a higher probability that tapering will be put back. what it does is really increase
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the trend we've seen of late. that is some buying and some holding of treasuries. right now, as you pointed out, as we discussed earlier, we don't think the markets -- the credit markets are going to respond directly. at least in these nations and certainly not in japan. what we do perceive, though, that's going to happen is the net benefactor of all of this is that china and china's ability to finance its own operations, really without recourse, without these sorts of issues, i think, is raem really becoming obvious. the net impact, we think, in asia is won 1-0 for china versus u.s. in terms of asset allocation. >> how long will it drag out, a shutdown for a day or two, get back together and move on and the next crisis and the debt ceiling and avoid that. if this drags on and a
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significant impact on u.s. growth and the economy, that will have a knock-on effect to a lot of countries in asia, especially export-driven economy. china, philippines, korea, thailand. >> for sure. if you just look at the headline numbers, like 800,000 people have just been added to the unemployment figure effectively, and what we think will happen the assumption the markets are making, is sooner or later they'll get together and sort it out. one thing that's overlooked, and i think quickly will be realized, is that without the ability to respond or publish data as promised and as they need, the economy is going to suffer. whether it's just $300 million a day in terms of net reduction on the u.s. gdp is going to make forward thinking and forward trading very, very difficult without this sort of data. so, it's added a much bigger
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question mark, i think, for the growth of the u.s. over the next quarter or two than we can actually analyze. that's why the markets will slow down and i think why the market will be much more sensitive to maybe what would be less impactful headlines. so, this is really stage one of the bunny in the headlines sort of stunned response we'll see. what it means is, you know, when the u.s. turns one way or another, we'll see -- we'll arguably see a much more significant impact in asian markets, particularly in japan, because volumes are going to go down. smaller volumes, it takes much smaller issue, i think, to drive these things one way or the other. >> we've seen this kind of ka buick kabuki theater here in the united states. is there a stunned disbelief that this has actually happened, that they did actually pull the driger and they go into a shutdown? >> yeah, yeah, for sure. asia's like, what?
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what? if you look at the headlines, all of a sudden 800,000 federal employees is unemployed, it is quite unbelievable. i don't think we really get it. whether it's just denial or apathy or lack of comprehension, we don't know. but certainly we spoke on our -- spoke to a lot of large fund managers, small fund managers, fx traders, arbitrage guys and the fact of the matter is, we're not going to do anything yet. what this does do is make it easier to push around larger and more institutional -- institutionalized holdings. if i'm sitting there, a federal employee, i look add my 401(k) and wonder where that's going, we are -- without wanting to be overly dramatic, we are entering october, which is historically not a good time for the markets. i think the other interesting thing is the vix index, measure of volatility of overall risk to the market is not really responding. certainly has not had a chance
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to respond. we're expecting a large spike in that. if that doesn't happen, i think we really are underestimating the impact of this. so, the simple fact of the matter, i don't think we understand -- certainly i don't understand. we don't know how we should play this yet. but it does mean we're getting -- we're going to be getting into the office a little earlier and reading headlines later at night before we go to sleep. >> that's fair minutes. we're only 2:43 into this. i guess we'll have to see how this plays out during the day. ben collett for us in hong kong. >> thank you. >> well, today not only marks the start of the u.s. government shutdown also marks the debut of a key provision of the law at the heart of this political standoff. that would be the new obama care insurance exchanges located across the united states. tom foreman looks at how those exchanges are expected to work. >> reporter: despite all these monday ujts changes to health care, most of us who have insurance probably won't see vp
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change. maybe some modification. this is about the 48 million people uninsured, half of whom are expected to buy insurance through these health care marketplaces. about 7 million are expected to do so by the end of the year. that's how fast this is happening. so, how do we imagine these marketplaces? think about a store where you can buy one of four different insurance plans. bronze, silver, gold or platinum. here's the difference between them. look at the bronze plan over here. if you buy this, you're going to have a lower monthly premium, but when you go to the doctor, your co-pay, your deductibles, your other fees will be higher. the other end of the spectrum f you buy the platinum plan, you'll spend more on your monthly premium but when you go to the doctor, you'll pay less money. this won't be the same state to state to state because local companies are involved so you can't call a family member living up in new hampshire and say, what are you doing, because it may be different in mississippi.
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no matter where you live, there should be no higher premiums if you get sick. there should be no denial of coverage f you have a preexisting condition. and you should have no fees for preventive care. if you get inoculations for your kids, mammogram, a routine physical, you shouldn't be paying for that under this new plan. still, there is money to be paid. for a lot who don't make money, this may seem very expensive, that's why the government is going to help out. if you make $46,000 as an individual or $94,000 as a family of four or less, the government will give you a refund to help pay for your insurance under this new plan. but no matter what happens, you're going to have to get involved. even if you live in one of the dozens of states that have said they want nothing to do with obama care. you're still going to be involved. all that means is your state government will not be involved in othrganizing this health car marketplace. the federal government will do it there instead of your state government. you'll go to a federal website to sign up.
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you'll have to do something, otherwise the federal government is going to fine you for not having insurance. that's what this is all about. and that's why it really is decision time coast to coast. >> we need more of tom foreman explaining as this law, even though the government is shut down, this law does go into effect today. >> that's the irony. the government shut down. the thing they wanted to stop is going into effect. if you plan to the united states, maybe take in a few sights, try calling ahead because your plans may have changed. >> these are some of the great features that d.c. has to offer with the zoo and, you know, the museums and things like that. when it's shut down, it takes away from things families can do. >> up next, the impact of the u.s. shutdown on most popular tourist destinations.
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welcome back. we have a lot more of the u.s. government shutdown in just a moment. first, a major tropical system is taking place in the western pacific standing to impact a lot of people. >> we ivan cabrera out of his chair. >> the weather department shut down. >> you never shut down.
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>> over the next few days, the western pacific has turned into a typhoon factory. it's unbelievable. we had the last storm which is gone across southeast asia. now we're taking attention to a tropical storm with the potential to be a strong typhoon. we have only three days to get ready. if you're watching us from the southern japanese islands you must get ready for a strong typhoon. we could have winds over 20 0 kilometers per hour by the time we get into the next three days. it is going to make a run for the southern japanese islands and potentially impacting the korean peninsula. winds right now not that strong but that is going to change as it did with our last typhoon. right before landfall. what you want to see is the storm weakening. when you see an eye like that, that is the opposite of weakening. it's strengthened as it made landfall. do we have pictures of there?
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pictures coming thailand getting impacted in the last 24 to 48 hours. as soon as it moved in it dissipated. the tragedy here with this storm, the three fishing boats. did you hear about this? off the coast of guandong, 84 still unaccounted for. still doing search and rescue operations. they're doing so not with weather like that. that's good news. you'll be able to see what we have at this point here is just clouds left over, a few showers. this storm is just vanishing here. that's good news. as i mentioned, we have more on the way with the typhoon taking center stage. in tokyo, this is the storm. i'm not worried about any damage or significant impacts. i think the worse will be in the next couple of days, if you have
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a flight into tokyo, we have gusty winds as this storm continues to move off to the north and east. like i said, a typhoon factory in the western pacific over the next few days. keel keep an eye oe all of them. there are two storms after the ones we're tracking still yet to form. we'll be busy. no shut down here. >> not getting shut down. going to stay on the job, unlike the u.s. government. thanks, ivan. budget battles shut down the u.s. government twice in the 1990s. the federal government shut down for 21 days in 1995 and before that, for five days. u.s. officials say those shutdowns cost a combined $1.4 billion and 800,000 federal employees were furloughed. newt gingrich was speaker much the house then. he was on piers morgan and he
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talked about himself and his relationship with the president. >> the burden is largely on the president by nature of the job, but the fact is that they are in a much weaker position to negotiate than bill clinton and i were, partly by personality and partly by design. we both had -- we both had a terrific capacity for compartmentalalizing. a part of us which would fight and part to negotiation. we didn't let the negotiating stop the fighting or the fighting to stop the negotiating. >> maybe they can call in gingrich and clinton to help them. >> their days are over. >> people just wanting to have some fun and the tourists who have come all the way to the united states, one of the most revered sights in the entire world is also one that cannot be seen. poppy harlow tells us the symbol of america will be seen by
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patriotic american from afar. >> reporter: liberty island was slammed by superstorm sandy, closed for eight months. now another shutdown. what does it mean for to you visit the statue of liberty? >> freedom, liberty. that's why i'm in america. so, to hear that the government is shutting down, it's like, what have we come to? >> reporter: stacy garcia is among the last visitors to the island. >> lady liberty. >> reporter: along with a government shutdown comes closure of the nation's national parks, including lady liberty. for folks coming to new york to see the iconic statue of liberty, this may be their last chance in cho knows how long. >> it's going to be awful. it will also damage the economy in ways nobody has bothered to calculate yet. it's mindless. >> reporter: with more than 280 million visitors a year from yosemite to the grand canyon, now 400 national parks are
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closed. >> i'm not going to let congress, you know, make me miss the statue of liberty, which is so important to me as a retired history teacher. >> reporter: tourists turned away. more than 21,000 national parks employees furloughed and thousands more like clean-up crews and concession stand workers all left without jobs. >> i have to find another job if, like, they're not paying us while we're laid off or file for unemployment. but it's not going to be enough. it's hard to think about. >> reporter: quinn says he needs this job just to get by. and he doesn't have a plan "b." do you have a message for washington? >> things like this can have such an impact for the people who aren't in the limelight, people working hourly positions. this whole island will be shut down. that's a ton of different positions people won't be getting paid for. >> boat is headed back to new york city, guys. >> reporter: liberty island sees up to 4 million visitors a year. 20,000 a day in peak season.
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that's $17 per ticket for adults. that's big money. >> even more than the money, it's the fact that there are folks that, you know, this is a once in a lifetime opportunity for a lot of folks. >> reporter: an opportunity that means a lot for so many. like stacy garcia. poppy harlow, cnn, new york. >> you've bundled the kids onto the plane, you've flown 14 hours, whatever it is, and you want to go -- >> it's your big moment. you've been wheying for it, saved up for it. >> you want to go to the statue of liberty and they're like, sorry. >> doesn't seem fore. we're sorry. on behalf of all of us here in the united states, sorry. >> i'm not american so i don't have to apologize. >> true. >> the house did wrap up for the night, less than an hour ago. they continued working even though the government shutdown went into effect about three hours ago now. >> take a look at the late debate on the house floor.
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>> you're bowing to the extremists, the tea parties, who really don't want to see this process move forward. we know that the affordable care act is the law of the land. we know it's been affirmed by the supreme court of the united states. lets move on. >> ets nit's not like the presi says, there will be no negotiations. he'll negotiate with foreign dictators before he'll negotiate with us. >> what if democrats said, we're going to shut down the government if we don't get immigration reform, gay rights or gun control? >> the truth, you can't handle the truth. mr. speaker, we have shown the other side how premiums are going up 200%, 300%. we told them about the loss of jobs. >> you have been high jinxed by a small group of extreme folks who simply hate this president. >> how dare you presume a
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failure. the fact is -- the fact is this it country is based on people saying they won't do things, and at the end of the day, coming together for compromise. >> you can hear a lot more finger pointing, i would think. >> it's only just begun. >> both the house and senate are due back in tuesday morning. that's about seven hours. we'll see if they're able to break the stalemate and end this government shutdown. much more coverage in our next hour. >> including live reports from cnn correspondents in the united states as well as around the world. we'll be back after a very short break. before they sat down, one more time, just for themselves.
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